Deployers can set fees of up to 50% but face slashing by validator vote for poorly defined or unsettled markets, under terms Hyperliquid calls preliminary.
Hyperliquid said its HIP-4 upgrade will support permissionless deployment of prediction markets in a future enhancement, allowing anyone to list event contracts on the decentralized exchange, according to a statement the team posted on Telegram on Sunday.
To deploy, builders will be required to stake 500,000 HYPE — about $30 million at the token’s current price near $60, per CoinGecko — which validators can slash through a vote if they determine a market was poorly defined or settled incorrectly. Deployers will earn up to 50% of the revenue from trading fees on their markets.
From Validator Control to Open Deployment
HIP-4 introduced “outcome trading” to Hyperliquid and went live on mainnet in May. Prediction markets currently remain under the authority of validators, who approve each listing.
Under the planned change, validators will instead vote on standardized outcome templates that define how markets are structured and enforced on-chain, letting deployers launch new markets using approved formats without per-listing approval. Permissionless markets will roll out first on testnet and later on mainnet.
Validator-controlled markets will continue to exist but are expected to be rare — “ideally” fewer than 10 per year, Hyperliquid said.
Reported details of the spec indicate the staked HYPE will be locked for six months, with deployers required to settle every outstanding market before withdrawing, and each deployer initially receiving capacity for 100 outcomes.
Demand Link to HYPE
The staking requirement ties prediction-market growth to demand for HYPE, removing 500,000 tokens from circulation per deployer against a circulating supply of roughly 253 million. HYPE rose about 1% in the hours after the announcement, lifting from an intraday low of $59.88 to just above $60.50.
The move puts Hyperliquid deeper into a prediction-market sector dominated by Polymarket and Kalshi and increasingly contested by centralized platforms such as Coinbase and Robinhood. Whether independent builders commit eight-figure sums to deploy markets will determine how much the permissionless design is used in practice.